Correlation Between Elixinol Global and Hemp
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Hemp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Elixinol Global and Hemp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Hemp Inc, you can compare the effects of market volatilities on Elixinol Global and Hemp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Elixinol Global with a short position of Hemp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Hemp.
Diversification Opportunities for Elixinol Global and Hemp
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Elixinol and Hemp is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Hemp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemp Inc and Elixinol Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Elixinol Global are associated (or correlated) with Hemp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemp Inc has no effect on the direction of Elixinol Global i.e., Elixinol Global and Hemp go up and down completely randomly.
Pair Corralation between Elixinol Global and Hemp
Assuming the 90 days horizon Elixinol Global is expected to generate 1.05 times less return on investment than Hemp. But when comparing it to its historical volatility, Elixinol Global is 1.68 times less risky than Hemp. It trades about 0.18 of its potential returns per unit of risk. Hemp Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Hemp Inc on August 2, 2025 and sell it today you would earn a total of 0.00 from holding Hemp Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Elixinol Global vs. Hemp Inc
Performance |
| Timeline |
| Elixinol Global |
| Hemp Inc |
Elixinol Global and Hemp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Hemp
The main advantage of trading using opposite Elixinol Global and Hemp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Hemp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hemp will offset losses from the drop in Hemp's long position.| Elixinol Global vs. Genix Pharmaceuticals | Elixinol Global vs. Hemp Inc | Elixinol Global vs. Cbd Life Sciences | Elixinol Global vs. James E Wagner |
| Hemp vs. 4Cable Tv Internatio | Hemp vs. James E Wagner | Hemp vs. Cbd Life Sciences | Hemp vs. Pure Harvest Cannabis |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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